The Human Resource department is responsible for finding such talented manpower and placing them in the right position in the banks. Any organization dealing with people requires good human resource management and efficient working organization. Banking has been and will always be a "People Business". Efficient and effective management of the human resource in the organization turns it into a successful one.
The management of people in the organization along with handling the financial and economic risks at the wider level is the most potent challenge in front of the banking industry in any given time frame. Because Banking Industry is a service-based company. Apart from the risks in the banking sector, the people handling the day-to-day affairs in the banks need to keep customer satisfaction in mind. The people working at the front office become the face of the bank and thus it is the responsibility of HR to make sure there are eligible people working up front. They need to make sure that the candidates selected in the banks go through necessary training before they begin their work so that they are aware of the nuances of the core banking industry and customer relationships, better. The HR management needs to think both about the quantity and quality requirements in the banking sector and deal with the shortage in the skilled manpower supply in the sector efficiently.
- Plan ahead for recruitment: The ever-changing banking industry, with steady growth in the past decade, has resulted in many vacancies and overall growth in the sector. The number of branches of the Public sector has risen significantly and accordingly, the requirement for skilled manpower has grown as well. The HR management team is responsible in any particular bank to analyze the future requirements of their organization and steadily calibrate the recruitment process.
- Maintaining a balance of experience and youth in the workforce: The changing scenario of the banking sector with the emergence of online banking and core banking services, there is a need to incorporate youth energy and exuberance in work. But, there should be a fine balance between the youth energy and experienced professionals, to make it a successful and fruitful combination, just like in any other sector. Hence, the HR manager is responsible for maintaining this balance and undergoing some cultural and management adjustments to fit the people working.
- Training of the manpower: The technology along with the method of working in the banking sector is changing rapidly. Not only the machines, but approaches to various schemes, policies, and banking facilities are changing with time. The new recruit and the older ones as well, need to undergo the necessary training to grasp the same from time to time. Human resource management makes sure that the people working in the banking organization are not suffering from any such discrepancy. Empowering the employees with training and measuring their performance afterward, is what the human resource department needs to look after.
- Performance management and talent spotting: The HR management remains responsible for measuring the overall performances of the employees working in different departments. They focus more on the people who are lacking the spirit of working in the organization and try to help them improve their performance for the betterment of the bank. To give importance to the hard work and dedication of employees, the HR department provides adequate praise and promotion to them.
- Keeping a tab on the personal requirements of the employee: The employee in any organization seeks his/her value in the company. They tend to work even harder once they feel they are an important source for the company and the company thinks of them in return. Providing pay perks for good works, keeping some personal information and wishing them on the occasion, allowing leave, and keeping a tab on the promotional and transfer requirements are some of the things that the HR department needs to look into.
- Keeping a tab on retirements and resignations: Talent retention is also the responsibility of the HR department. The HR team is also responsible to make arrangements to stop the resignations that the employees are giving to a particular organization. They need to assess and analyze the reasons behind the decision of leaving the organization by the employees and work on it to better the situation. The HR team also needs to have a record of the retirements planned in a few years and make sure that they have recruitment notifications ready to fill the vacant shoes.
- Jagranjosh(2022) Why Human Resource Management is important for banks. [Online] Available at https://www.jagranjosh.com/articles/why-human-resource-management-is-important-for-banks-1464354319-1 [Accessed on 09.12.2022].
Totally agreed with you. Yes, Human Resource Management is important for banks because banking is a service industry. An efficient and skilled workforce can manage the financial risks banks have to take on a regular basis.
ReplyDeleteRole of HR strategies for improving organizational performance in the banking sector in Sri Lanka.For any organization, the human resources play a phenomenal role in the overall effectiveness, efficiency and profitability of the organization. The key characteristics of this type of resource are that every individual is a unique package of qualifications, aptitude, skills, abilities, psychological setup, behavior and approach. As a group these attributes interact to render various management styles in an organization. Thus, human resource is aptly considered as the strongest asset of an organization.
ReplyDeleteI agree with you Ranagana. Human recourse is the strongest asset of an organization. Because all the computer based technological innovation build by the humans. According to the banking sector, employees are handling customers money.It is very risky. Banks can move with the digitalization But if there is any transaction failure human being need to support customers. As a common example when customers deposit or withdrawal money through the ATM,CRM machines. If there is a current failure or any other system failure this transaction not be done. That time employees support very essential. That is the reason employees needful to this industry and Organization HR management should be helpful to them.
DeleteReally chethina,this is the utmost important fact when we are working in an organization.This cleary mention how Human resourse dept involvs in banking sector.Recruitments,trainings,recognition for works,compansation & benefits are some of factors under HRM.
ReplyDeleteSure Shashika. Employees should be thorough with their knowledge. HR management should be arrange their development. Staff development center arrange training programs for them. There are some branches working under pleasure because of the lack of employees. HR Management should be recruit new employees for the replacement. It is very needful to divide employees duties and work freely.
DeleteYes employees are the backbone of any organization. They are the most precious and important asset among all the assets of any organization. Job satisfaction is a part of employee life satisfaction. So the employee job satisfaction becomes one of the top priority issues in the banking industry.
ReplyDelete